Crypto adoption on Wall Street is in full swing!
Goldman Sachs makes first Bitcoin-backed loan as Wall Street warms to cryptocurrencies
Bitcoin holders can borrow from Goldman in fiat currencies using BTC as collateral. The credit facility, which is tied to cryptocurrencies, carries the risk of liquidation if the bitcoin price falls too low and the borrower does not increase its collateral. Goldman’s facility is the first of its kind offered by a major US bank.
Goldman Sachs has led the exchange’s push into the crypto space, and this latest move is no exception. The firm traded its first over-the-counter bitcoin options in March and is offering a credit facility in April – let us see what May brings.
The current view is simple: if BTC can be used as collateral, it will be very risky for the debt market and a new kind of financial crisis could not be predicted.